C

Citi, BofA May Need to Increase capital

By | Daily Report | No Comments

According to Wall Street Journal, U.S. regulators told Citigroup Inc and Bank of America Corp they may need to raise more capital. The shortfall in capital amounts to billions of dollars at BofA, the paper said, citing people familiar with the bank. Both banks, whose officials are objecting to the preliminary findings of the tests, plan to respond with detailed rebuttals, the people told the paper, adding BofA’s appeal is expected by Tuesday. It is…

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Citi, Uptick and Mark-To-Market

By | Daily Report, Market Psychology, Technical Analysis, US Market | No Comments

So we had it finally. The pressurized spring bounced back and shorts were pressed against the wall to cover. Fantastic rally by all means, it was easily qualified as a 90% Upside Day on both the NYSE and the NASDAQ that too on expanding volume. Market breadth was also much more impressive during yesterday’s rally. I had never thought (Probably Vikram Pandit as well) that his letter to Citi (C) employee can spark such a…

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Citi(C), Aflac(AFL), SanDisk(SNDK) and DOW

By | Daily Report, US Market | 2 Comments

There is a lot of earnings data this week and today is also heavy. There doesn’t appear to be a clear direction. As of this writing futures are pointing to modestly higher opening. Here are four heavyweights- Citigroup (C) issued a quarterly progress report sharing how they are deploying $45 billion in capital it received from the Treasury under the TARP. “Our responsibility is to put these funds to work quickly, prudently and transparently to…

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JP Morgan Chase beats by $0.07, misses on revs

By | Market Psychology, Technical Analysis, US Market | No Comments

JP Morgan Chase (JPM) Reported Q4 (Dec) earnings of $0.07 per share, $0.07 better than the First Call consensus of ($0.00); revenues fell 0.9% year/year to $17.23 bln vs the $18.83 bln consensus. Losses were in investment banking due mark downs on leveraged loans and mortgage trading positions. They faced higher credit costs associated with continued deterioration across our loan portfolios, including a $4.1 billion addition to loan loss reserves. Let’s see how it filters to…

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Is Berkshire in Trouble?

By | Investment Strategy, Market Psychology, US Market, Worldwide Markets | No Comments

This 2 part series will cover recent market developments about Berkshire Hathaway, points to a strategy on how you may benefit more on the same trades he did recently and an option trading strategy that probably Berkshire uses for maximizing it returns on the underlying they find worth investing. Don’t forget to read the big picture of US stock markets. Markets are behaving pretty much that way. I am opening December portfolios for OPNewsletter, to join,…

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Cut Jobs, Raise Rates, Buy Shares

By | Daily Report | No Comments

A day after Citigroup (C) hit a multi-year low and relaxed below $10, CEO Vikram Pandit’s bought some shares (~>US$8MM) and announced to axe another 10,000 jobs. He also decided to raise rates on credit cards. Weren’t they suppose to lower the rates when FED is even willing to go lower than 1%, hello!!!Sure “they” know something that I don’t? Sales fell a larger than expected 2.8% for the month (consensus -2.1%), while Sales less autos declined a larger…

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